FxWirePro: Sterling likely to reach 1.6 without Brexit

Though it is next to impossible to predict that which side will prevail in the referendum, the “Remain” or the “Exit”, recent news flows and supports may have changed the mood among the public, especially the undecided voters, who may have changed the mood among the public, especially the undecided voters, constituting 10-12 percent of the population and they will make all the difference. Recent passionate pleas by European leaders, companies, and media houses unlikely to fall into deaf ears, nor will the pleas by prominent British personalities like David Beckham, who issued a statement yesterday explaining voters the harmony of being together and why will he be voting to stay.

Still it is only fair to say that there will be uncertainties surrounding the outcome, hence any position should be taken with a strict stop loss but accompanying the possible volatilities. Recent financial literatures and commentaries have mostly laid out the potential downside move, in which sterling is predicted to decline 15-20 percent.

We, at FxWirePro, will like to take the opportunity to lay out the possible upside.

Trade idea:

• Buy GBP/USD at current 1.468 and at dips with a stop loss around 1.4 area and with the first target at 1.55 area and the next one at 1.6 area.